Yesterday saw a notable rotation as momentum, Tech and growth names came under pressure while value and lagging stocks were stronger. This morning the S&P 500 opened around unchanged but quickly fell 1%. The pressure on the growth factor continued as mega and large cap value outperformed by over 1% early on. The S&P is attempting to reverse course as we hit afternoon trading, moving off its lows to reclaim about half the losses. Once again Comm Services and Info Tech are lower. The ICE semi and FANG+ indexes are down ~1% but off the lows. Consumer Discretionary is another laggard today, with the mega caps off 2-3% while Travel & Leisure and homebuilders are lower as well. Retailers are mixed after several earnings reports. Staples and Energy are upside standouts. Household products are holding up well. Walmart reports tomorrow morning. Energy is seeing most E&P names higher but services modestly lower. Treasury yields have moved to their lows of the day, down 2-3bp after starting around unchanged. There’s a 20yr auction at 1pm. That tenor is kind of like the aging NHL enforcer in today’s game that can’t skate or shoot - it doesn’t really have a position. The data calendar is light but will pick up tomorrow with flash PMIs and weekly claims. The FOMC minutes are out later today, providing a look into FOMC positioning ahead of Chair Powell’s Jackson Hole speech on Friday. Specifically, the minutes will be dissected to ascertain how the rest of the committee aligns with the two dissenting votes from last meeting. With Powell nearing his last Jackson Hole speech, the drama surrounding the Fed is somehow increasing. According the Bloomberg, FHFA director Pulte wrote a letter to Attorney General Bondi, urging an investigation into Fed Governor Lisa Cook over a pair of mortgages. Trump has called on Cook to resign on social media, and the WSJ is reporting that Trump is discussing ways to fire her for cause if she doesn’t.

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